The I.R.S. Targets 232,000 Social Security
Recipients
This week,
the I.R.S. admitted that they are planning to start docking the
Social Security checks of 232,000 Social Security recipients in
an attempt to collect back taxes. As a result, many of these Americans
may be trying to survive below the poverty level.
According
to the San Jose Mercury News, Jim Seidel, a tax attorney and editor
of RIA's Federal Taxes Weekly Alert, "Apparently, the I.R.S.
now feels it has enough safeguards in place to avoid a public
relations disaster . . ."
Carrie Ardelean,
Vice President of Operations with Americans for Fair Taxation,
stated, "Here's how bad it could get. The average retired
worker now receives a mere $845 monthly Social Security check.
Deducting the proposed 15% will reduce that check to $718, just
$2 above the H.H.S. poverty level for a retired worker. Since
these are averages, about one-half of the targeted Social Security
recipients may be receiving monthly checks which could put them
below the poverty level."
[Sources: http://www.ssa.gov/pubs/10024.html
and http://aspe.hhs.gov/poverty/01poverty.htm
]
Ms. Ardelean
further commented, "This is unfortunate news for many Americans
trapped into surviving from one Social Security check to the next.
If our plan -- the FairTax -- is passed, docking Social Security
checks will not be necessary. In fact, the FairTax -- a federal
consumption tax designed to replace the entire federal income
tax system -- will eliminate all federal withholding from paychecks,
pensions, and Social Security checks. In addition, the federal
government will no longer track income of any kind, because only
consumption will be taxed. Meanwhile, FairTax revenues will fully
fund Social Security and Medicare at their current levels. This
should be welcome news, especially for targeted Social Security
recipients who are barely surviving, month to month, on their
meager Social Security checks."